The greenback is leading gains in the major currencies space
The dollar is continuing its good form to start the week as it is maintaining decent gains in the European morning session, with EUR/USD slowly creeping towards session lows now.
The greenback is posting modest advances against risk/commodity currencies as well, but the two key charts I'd like to focus on in this post are EUR/USD and USD/JPY.
On the former, the pair has already broken below the key daily moving averages and is now nearing a test of the 38.2 retracement level @ 1.0964. But more notably, sellers are seizing more control after breaking the 100-hour MA @ 1.1006.
That shows that buyers are losing further ground with near-term support seen closer towards 1.0954 as well - so that will add to the daily support at 1.0964.
For now, dollar bulls are slowly expanding their territory and a move back below 1.0900 and the 200-hour MA @ 1.0879 will just solidify the downside momentum.
Meanwhile, for USD/JPY, the pair continues to keep near the 108.50 level as price action is centering around the 200-day MA @ 108.34.
For buyers, keep above that into the daily close and that will be a good platform to build on for further gains towards testing the 100-day MA @ 109.00 next.